Rolls-Royce: Formal talks due to begin to bolster profits after lacklustre 12 months

Rolls-Royce's largest shareholder will be holding formal talks with company chiefs to bolster performance after a decline in profits during the last 12 months. According to Sky News, senior figures from ValueAct will meet Tony Wood, the president of Rolls-Royce's aerospace division during a visit to Derby.

In a statement issued to the broadcaster, a Rolls-Royce spokesman said: "As part of our ongoing investor relations activity, we regularly offer our major shareholders the opportunity to visit our facility in Derby in order to gain a better understanding of our business.

"We organise several such trips every year. Following the update to investors on 24 November, we are hosting half a dozen major shareholders next week, including representatives of ValueAct. Our engagement with ValueAct continues to be constructive and we share a common belief in the long-term prospects of our business."

It follows the announcement from new chief executive Warren East to slash 2,000 senior positions and cut millions of pounds from its annual cost base to take the company through a "period of unprecedented change".

The business has suffered losses following cuts to defence spending and reduction in demand of its services in the oil and gas industry.